Question

9:18 lưE + mybusinesscourse.com Business Course Recording Payroll and Payroll Taxes The following data are taken from Stockton Wholesale Company's May payroll: Administrative salaries $50,000 Sales salaries 51,000 Custodial salaries 7,000 Total payroll $108,000 Salaries subject to 1.45 percent Medicare tax $108,000 Salaries subject to 6.2 percent Social Security tax 85,000 Salaries subject to federal unemployment taxes 14,000 Salaries subject to state unemployment taxes 21,000 Federal income taxes withheld from all salaries 17,800 Support Assume that the company is subject to a two percent state unemployment tax (due to a favorable experience rating) and a 0.6 percent federal unemployment tax. Required Record the following in general journal form on May 31: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA matches the amount withheld.) d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time. Round your answers to the nearest dollar.

Answer 1

General Journal
Date	Particular	Debit	Credit
a.
31-May	Administrative Salaries	$ 50,000.00
	Sales Salaries	$ 51,000.00
	Custodial Salaries	$    7,000.00
	Federal Income Tax Withholding Payable		$ 17,800.00
	FICA Tax Payable		$    6,836.00
	Salaries Payable		$ 83,364.00
	(To record May Payroll)
b.
31-May	Salaries Payable	$ 83,364.00
	Cash		$ 83,364.00
	(To pay May net payroll)
c.
31-May	Payroll Taxes Expenses	$    7,340.00
	FICA Tax Payable [ $ 108,000 * 1.45% + $ 85,000 * 6.2% ]		$    6,836.00
	Federal Unemployment Tax Payable [ $ 14,000 * 0.6%]		$          84.00
	State Unemployment Tax Payable [ $ 21,000 * 2% ]		$        420.00
	(To record employer's May Payroll Taxes)
d.
31-May	Federal Income Tax Withholding Payable	$ 17,800.00
	FICA Tax Payable	$ 13,672.00
	Federal Unemployment Tax Payable	$          84.00
	State Unemployment Tax Payable	$        420.00
	Cash		$ 31,976.00
	(To pay liabilities related to May payroll)